DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/1388591
62 need locks added, you need cleaning …" ere is a run on such contractors immediately following a disaster, so the servicer should have this vendor network in place ahead of time, with multiple "approved" vendors for several types of services. Iafigliola agreed: "e main challenges for property preservation providers after a disaster includes a lack of available supplies in an impacted area—wood, shingles, and replacement materials to get the property back to standard. We also need to bring in vendors from out of the area to help assess and repair damage. Typically, local vendors are impacted and unable to assist. Conflicting availability of access to the affected properties based on local officials, law enforcement, and FEMA officials—ensuring vendors have access is another concern. Delays and wasted time in bid approval processes instead of being able to take immediate action is perhaps the biggest challenge when trying to address damaged properties after a disaster." ere is a need for coordinated disaster response, but insurers need to be included for such a program to be truly effective, Mason said. "ere needs to be a consolidated approach to insurance coverages, and to communicating with the servicers and the borrowers." Too often with disasters today, the borrower needs to search for the policy, and if found, calls the servicer, which then refers the borrower to the insurer, meaning delays in getting the situation addressed, Mason noted. "at's pretty scary. It's a very rocky road for a lot of people in that scenario, and something I think we could all do better with." Hughes recommended that servicers and lenders use the following checklist to prepare for future disasters: » Monitoring programs » Dedicated scalable teams » Pre-impact communication: prepare & education, set expectations of possible post- impact actions » Self-service options: avoid the call center (long hold times, potentially inconsistent handling); self-service is controlled, thorough, consistent (complicated, non- vanilla scenarios are referred to season reps for handling) » Multiple means of communication, preferably not telephony: emails, web notifications, texts, push notifications "Customers must stay in communication with their servicers, there are more options today [and more coming from the GSEs and GNMA] than ever before to avoid foreclosure," Hughes added. NEW DISASTER-PLANNING CHALLENGES "e pandemic and housing market have created several new pain points for our industry," Mosely said. "For example, we are dealing with a significant, national lumber shortage. With existing supply issues already in place, a natural disaster could compound the issue. e lack of supplies needed to secure homes, specifically during hurricane season, could lead to more widespread damage, placing an even greater burden on homeowners and servicers already dealing with the impact of the disaster." Additionally, there are many unknowns regarding the status of properties that are on the precipice of foreclosure, Mosely said. "With local, state, and federal moratoriums in place, there have been some limitations on inspections and maintenance services," he said. "As the moratoriums lift and borrowers exit forbearance plans, it will be important to quickly inspect and secure any new vacant properties to ensure they are safe, protected, and well- maintained." But even with the new challenges, today's technology, plus experience with past natural disasters and with the COVID-19 pandemic, have prepared the servicing industry to be able to respond to the next "storm," be it a hurricane, tornado, or another crisis. Phil Britt started covering mortgages and other financial services matters for a suburban Chicago newspaper in the mid-1980s before joining Savings Institutions magazine in 1992. When the publication moved its offices to Washington, D.C., in 1993, he started his own editorial services room and continued to cover mortgages, other financial services subjects, and technology for a variety of websites and publications. Cover Story By: Phil Britt "It is critical to visit the impacted property as soon as possible after a disaster and once it is safe to assess immediate issues." —Joe Iafigliola, CFO, Safeguard Properties